What is a surety bond? and why do you need one before beginning a job?
A surety bond is basically a guarantee that the services promised by the contractor are fulfilled. In other other words it is a bond that will make sure that the job gets done no matter what! without the extra expensive of finishing the job yourself, in the event that some work is left incomplete or done wrong!
The surety bond will include three parties?
- The customer to be protected by the surety bond
- The contractor who promises to fulfill work specified in the contract
- The insurance agency that gives the bond to contractor in order to ensure that job will be completed
So do you need a surety bond? The answer yes, if you have any financially large job to do. For example if you were hiring a contractor to construct you a new home, you would want to definitely get a surety bond before you begin, so that in the event of the contractor failing to fulfill his contractual obligations you can ensure that the work will be complete by having the insurance money to fund another contractor to finish the abandon or unfinished work.
Or if you were to hire some one to transport a newly purchased vehicle to your home, you want to make sure that it arrives on time and without damages. A surety bond in this situation would safeguard you from financial loss because the surety bond would provide the insurance to pay for either the damages or loss of your new vehicle.
So what is a surety bond ? It is peace of mind that everything will go according to plan! Allow us at Simon Insurance to be the 3rd party that will contractual bind the contractor to the work he or she is obligated to do!